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Stamp Duty in Thailand
Stamp duty in Thailand is a tax imposed on legal documents and transactions that are executed within the country. The tax is imposed on a wide range of documents, including contracts, deeds, and agreements, and is typically based on a fixed rate or a percentage of the value of the transaction. Stamp duty is an important aspect of the Thai tax system and is a significant source of revenue for the government.
Types of Documents Subject to Stamp Duty
A wide range of legal documents and transactions are subject to stamp duty in Thailand. Some of the most common types of documents that are subject to stamp duty include:
- Contracts and agreements, including employment contracts and lease agreements
- Deeds and mortgages, including land and property transactions
- Shares and securities transactions
- Bill of lading and other shipping documents
- Insurance policies
- Power of attorney
- Affidavits and statements
The rate of stamp duty imposed on a document or transaction can vary depending on the type of document and the value of the transaction.
Types of Stamp Duty
There are different types of stamp duty in Thailand, including ad valorem stamp duty and specific stamp duty. Ad valorem stamp duty is a tax imposed on a percentage of the value of the transaction, while specific stamp duty is a fixed tax rate imposed on certain types of documents. Examples of ad valorem stamp duty include 0.1% of the value of a loan agreement, and 1% of the value of a mortgage agreement. An example of specific stamp duty is THB 20 for a power of attorney.
Calculation of Stamp Duty
The calculation of stamp duty in Thailand depends on the type of document and the nature of the transaction. For ad valorem stamp duty, the tax is calculated based on the value of the transaction, as stated in the document. For specific stamp duty, the tax is calculated based on the fixed rate that is imposed on the document. Businesses and individuals must ensure that they pay the correct amount of stamp duty on their legal documents to avoid penalties and fines.
Stamp Duty Exemptions
There are certain exemptions available for stamp duty in Thailand. For example, government documents and documents executed by government agencies are generally exempt from stamp duty. Additionally, certain types of transactions, such as the transfer of property to a spouse or child, may be eligible for an exemption.
Stamp Duty Registration
All legal documents that are subject to stamp duty in Thailand must be stamped with a revenue stamp, which serves as proof of payment of the tax. Revenue stamps can be bought at any Area Revenue Branch Office or authorized stamp vendor. Businesses and individuals must also keep records of all legal documents that are subject to stamp duty, including the revenue stamps, to ensure compliance with the laws and regulations.
Penalties for Non-Compliance
Businesses and individuals that fail to pay the correct amount of stamp duty on their legal documents or fail to keep accurate records may be subject to penalties, including fines and interest. In addition, failure to comply with stamp duty regulations can result in the invalidation of the legal document, which may have significant legal and financial consequences.
How Phuket Legal Firm Can Help
Calculating and paying stamp duty in Thailand can be a complex and time-consuming process, and it is important to have a professional handle the process to ensure timely compliance and avoid penalties and fines. Phuket Legal Firm offers comprehensive stamp duty services to our clients in Thailand.
Our team of experienced professionals can help with the calculation of stamp duty, the purchase of revenue stamps, and the submission of legal documents, as well as provide guidance on stamp duty exemptions and ongoing compliance requirements.
Rate of Stamp Duty
Rates of stamp duty are given in the schedule attached to the Chapter VI of Title II of the Revenue Code. The rates of duty range from 1 Baht to 200 Baht. A sample of stamp duty rates on some selected instrument is as follows:
|Nature of Instrument/Transaction|
|1. Lease of land, building, or other construction or floating house|
For every 1,000 Baht or fraction thereof of the rent or key money or both for the entire lease period.
|2. Transfer of share, debenture, bond, and certificate of indebtedness issued by any company, association, body of persons or organization|
For every 1,000 Baht or fraction thereof of the paid-up value of shares, or of the nominal value of the instrument, whichever is the greater.
|3. Hire-purchase of property|
For every 1,000 Baht for fraction thereof of the total value.
|4. Loan of money or agreement for bank overdraft|
For every 2,000 Baht or fraction thereof of the total amount of loan or the maximum amount of overdraft agreed upon.
5.(1) Bill of exchange or similar instrument used like bill of exchange
|6. Bill of lading|
If issued in a set, every one of the set must be stamped at such rate.
|7. Cheque or any written order used in lieu of cheque|
For each instrument
|8. Letter of credit|
issued in Thailand
For value less than 10,000 Baht
For value of 10,000 Baht or over
(b) issued abroad any payable in Thailand
For each payment
|9. Memorandum of association of a limited company submitted to the registrar.|
Where an instrument is not duly stamped, the person liable to duty or the holder of the instrument or the beneficiary there under shall be entitled to present the instrument to the tax official for payment of duty who shall allow payment of the duty, subject to the following provisions:
- Where the instrument not duly stamped is an instrument executed in Thailand and is presented to tax official for payment of duty within 15 days from the day when the instrument was required to be duly stamped, payment of duty shall be allowed merely at the rates set forth in the Stamp Duty Schedule.
- In other cases, payment of duty shall be allowed, but a surcharge shall be imposed as follows:
- If it appears to the tax official that no more than 90 days have passed since the days when the instrument was required to be duly stamped, there shall be imposed a surcharge of twice the amount of duty or of 4 Baht, whichever is higher.
- If it appears to the official that more than 90 days have passed since the day when the instrument was required to be duly stamped, there shall be imposed a surcharge of five times the amount of the duty or of 10 Baht, whichever is higher.
If, in consequence of the inspection conducted by the official or of the charge preferred or information furnished by any person, whether or not a government official, it appears that:
- a receipt required to be issued under the Revenue Code has not been issued, the tax official shall have the power to charge the full amount of duty, and in addition, to impose a surcharge of six times the amount of the duty or of 25 Baht, whichever is higher.
- an instrument has not been duly stamped because
- no stamp has been affixed, the tax official shall have the power to charge the full amount of duty and, in addition, to impose a surcharge of six times the amount of the duty or of 25 Baht, whichever is higher.
- the amount of the stamps affixed is less than the amount of duty payable, the tax official shall have the power to charge the deficiency and, in addition, to impose a surcharge of six times the amount of the deficiency or of 25 Baht, whichever is higher.
- in all other cases, the competent official shall have the power to impose a surcharge equal to the amount of duty payable or 25 Baht, whichever is higher.
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